Locomotive Maker, Progress Rail Services to Locate Assembly Operation in Muncie, IN

MUNCIE, Ind. (Oct. 29, 2010) – In the fourth announcement of its kind this week, Governor Mitch Daniels joined executives from rail industry supplier, Progress Rail Services, a subsidiary of Caterpillar Inc., announced today the company’s plans to locate a locomotive manufacturing facility in Muncie to serve the diesel-electric locomotive market and position the company to participate in future transit rail projects.  Progress Rail, which will operate the facility through a new subsidiary, anticipates this project could create up to 650 new jobs by 2012.
The company plans to invest approximately $50 million to open the first locomotive assembly plant in the United States in many years.  Progress Rail will launch assembly and manufacturing in the 740,000 square-foot facility formerly occupied by ABB Power T&D Co., which closed in 1998.  In addition, the company plans to build a locomotive test track on the facility’s 75-acre campus.

Today’s news from Progress Rail brings total jobs announced for Indiana this week to 2,000.  Earlier today Ascension Health said it would locate a professional service center in Indianapolis and create 500 new professional jobs.  On Tuesday ExactTarget announced plans to add 500 jobs in Indianapolis and Cummins said it would expand its Columbus headquarters by hiring an additional 350 associates.

“Weeks like this remind us that Indiana is a leader in private sector jobs creation because we’ve built the best sandbox for business. I can’t think of a better way to cap off the week – a major investment from a company that is a recognized leader in one of America’s great industries and hundreds of new jobs moving into a building that has long been vacant,” said Daniels.

Founded in 1983, Progress Rail Services manufactures repairs and refurbishes freight cars, locomotives and rail track for Class 1, short-line and transit railroad companies as well as private car owners.  In addition, the company oversees the reclamation of used rail, wrecked or retired railcars and locomotives and other scrap metal.

“We are pleased to announce the opening of this state-of-the-art facility that will allow us to better serve our customers,” said Billy Ainsworth, president and chief executive officer of Progress Rail Services. “We believe the Muncie community and the state of Indiana will offer our organization an outstanding location from which we will produce world-class products.”

The company has more than 130 operating facilities throughout the United States, Canada, Mexico, Brazil, Italy, Germany and the United Kingdom.  In August, Progress Rail acquired Electro-Motive Diesel, expanding its network of global locations, products and services.

The Indiana Economic Development Corporation offered Progress Rail Services up to $3.5 million in performance-based tax credits and up to $1 million in training grants based on the company’s job creation plans. In addition, the IEDC will provide Delaware County with up to $1 million in infrastructure assistance from the state’s Industrial Development Grant Fund.  The state will assist the company in applying for a $1 million federal Community Development Block Grant. Delaware County will consider a tax abatement, community revitalization enhancement district and tax increment financing request valued at approximately $22.5 million at the request of the Muncie-Delaware County Economic Development Alliance.

“Today’s announcement is outstanding news for the community. This project is the largest industrial project in the history of Delaware County in terms of the combination of new jobs, payroll, and capital investment.  News jobs for our residents and new opportunities for our existing businesses…that’s an outstanding combination,” said Terry Murphy, Vice President, Economic Development for the Muncie-Delaware County Economic Development Alliance.

“We will be working with the company to help plan supplier and service conferences,” said Jay Julian, President and CEO of the Muncie-Delaware County Chamber of Commerce. “The potential for additional jobs as a result of opportunities for existing businesses compounds the overall impact of this announcement,” added Julian.

“Progress Rail is the type of modern, advanced manufacturing company that every community desires. It not only provides excellent, high quality jobs but it opens opportunities for our existing businesses as well. This is fantastic news for our community,” said Todd Donati, president of the Delaware County commissioners.

Progress Rail Services’ decision to locate a new manufacturing facility in the Hoosier State comes just weeks after Area Development magazine named Indiana the top state in the Midwest and sixth best in the nation for business, according to a survey of national site selection consultants.

About Progress Rail
Progress Rail Services, a wholly owned subsidiary of Caterpillar Inc., is a leading supplier of remanufactured locomotive and railcar products and services to the railroad industry, operating one of the most extensive rail service and supply networks in North America. We serve our customers through a network of more than 130 locations across the United States, Canada, Mexico, Brazil, Italy, Germany, and the United Kingdom, with more than 4,300 employees. Progress Rail Services is headquartered in Albertville, Alabama. For more information, visit www.progressrail.com .

About Caterpillar
For more than 85 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2009 sales and revenues of $32.396 billion, Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com .

About IEDC
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC.  For more information about IEDC, visit www.iedc.in.gov .

About the Muncie-Delaware County Economic Development Alliance:
Vision 2011 is the Delaware County’s five year economic development program and is administered by the Muncie-Delaware County Chamber of Commerce and Delaware Advancement Corporation. For more information about the EDC, visit www.muncie.com.

-30-

Media Contacts:
Barbara Cox (Progress Rail Services) – 800.476.8769 or bcox@progressrail.com
Blair West (IEDC) – 317.232.8873 or bwest@iedc.in.gov
Terry Murphy (Muncie-Delaware County Economic Development Alliance) – 765-751-9104 or tmurphy@muncie.com